9681.T WACC - Weighted Average Cost of Capital

The WACC of Tokyo Dome Corp (9681.T) is 5.9%.

The Cost of Equity of Tokyo Dome Corp (9681.T) is 8.65%.

The Cost of Debt of Tokyo Dome Corp (9681.T) is 5.50%.

	Range	Selected
Cost of equity	6.90% - 10.40%	8.65%
Tax rate	29.10% - 29.50%	29.30%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 7.2%	5.9%

WACC

9681.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1.13	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	10.40%

Tax rate	29.10%	29.50%
Debt/Equity ratio	1.39	1.39
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	7.2%


Selected WACC	5.9%

9681.T's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 9681.T:

cost_of_equity (8.65%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (1.13) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.